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  5. HBND: Can you please recommend 3 bond ETFs that will provide in one year 10% yield including both dividends and capital appreciation? [Hamilton U.S. Bond YIELD MAXIMIZER TM ETF]
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Q: Can you please recommend 3 bond ETFs that will provide in one year 10% yield including both dividends and capital appreciation?
Asked by Ron on July 18, 2024
5i Research Answer:

Keep in mind bonds pay interest, not dividends, and are taxed accordingly. We would suggest XBB, XLB, XHY. Indicated yields are well below 10%, though (3.3%, 3.9%, 5.9%) and the only way to meet a 10% target is with capital gains as well. This is possible as rates fall, but we would not 'expect' 10% here. One could also look at HBND, a covered call US fixed income fund, with an indicated yield of 10.24% to raise the average yield. 

Authors of this answer, directors, partners and/or officers of 5i Research and/or affiliated companies have a financial or other interest in XHY.